Feasibility study standards

"Feasibility studies are the means by which mineral reserves are established prior to financing a project. However, guidelines are generally lacking for the content, data quality and accuracy of these studies. Regulators take a principle-based rather than prescriptive approach to the content of studies and look to the industry to define study content. Professional organizations, engineering firms and mining companies must eventually establish guidelines and best practices for this work. Most likely these will draw on standards or “stage gates” that have been developed by major mining houses and engineering firms. Engineering studies must: 1.,Define optimal mining and processing methods, production rates, infrastructure, product sales, environmental management and risk mitigation. 2.,Increase confidence in resources, reserves, production plans, processing performance, infrastructure design, environmental management, permitting, capital and operating costs, and financial performance to support financing. 3.,Provide engineering designs suitable for accurate cost estimates. 4.,Develop project execution plans with sufficient confidence that project delays and cost overruns will not occur. Conceptual (scoping, preliminary assessment) Establish the principal characteristics of the project from the geology, resources, metallurgy and development constraints. Assess different approaches to mining and processing. Identify project execution requirements. Test project viability with economic analyses. Recommend additional work to increase the confidence in geology, resources, metallurgical performance, infrastructure, operating and capital costs, environmental conditions and permitting to allow selection of the best development options."